Rudy Giuliani on Social Security

Former Mayor of New York City; Republican Candidate for 2000 Senate (NY)

Supports adding private accounts for Social Security

Giuliani backed adding private accounts for Social Security, a proposal that failed to win support when offered by President George W. Bush in
2005, and cutting the cost of health insurance so that more people can buy their own coverage. “If you start to establish a private market, you’re going to be able to figure out how to solve these things within costs that are sustainable,” he said.

Get a consensus behind private accounts

I think the reality is that we have to deal with Social Security. The first thing we have to do is get a consensus behind private accounts if we’re going to change it. And the fact is, Medicare and Medicaid and presently more expensive than
Social Security. So I think in both cases, if you start to establish a private market, you’re going to be able to figure out how to solve these things within costs that are sustainable.

Source: 2007 GOP primary debate in Orlando, Florida
, Oct 21, 2007

FactCheck: Hillary never proposed giving $1000 to everybody

Giuliani incorrectly described a proposal by Clinton to boost Americans’ 401(k) plans. Giuliani said, “Remember the Hillary bond program? She’s going to give $5,000 to every child born in America. I challenged her on it. She has backed off that.
She has a new one today. This one is, she’s going to give out $1,000 to everybody, to set up a 401(k). The problem is, this one costs $5 billion more than the last one.”

It’s simply not true that Clinton proposes to give out $1,000 to “everybody.”
That sum would only go to those making $60,000 a year or less, and only if they also contribute $1,000 of their own to their 401(k) plans. Specifically, she proposed providing “a matching refundable tax credit for the first
$1,000 of savings [in a 401(k)] done by every married couple making up to $60,000.” Money could be placed in an existing 401(k) or a new “American Retirement Account,” which Clinton would make available for those who don’t have a 401(k).

Trust me on Social Security reform, but no details yet

Q: With Fred Thompson, in particular, focusing on entitlement reform when he enters the race, Giuliani’s “trust me” answer on Social Security reform probably won’t survive without the mayor at least spelling out some general principles.
But he may well be right that there is a compromise out there waiting to be had.

Q: What’s your plan to deal with Social Security?

A: Social Security is something we can straighten out if I get elected. We should put together 5 Democratic & 5
Republican senators and tell them, “Give me 2 or 3 options, and then we’ll negotiate it out.” And I should tell you my style of working with a legislature. I always proposed more tax cuts than I got, and I always proposed a multiple-choice list of
tax cuts because I was willing to deal with a Democratic legislature and Democratic City Council. If you don’t want to lower the one I want to lower, maybe there is one you want to lower, and we can make a deal.